Takeda Completes $670M Asset Divestment and Commits $500M Investment to BridGene Biosciences for Neurodegenerative Disease Drug Discovery

On March 31, Takeda announced the completion of the previously disclosed transaction to sell a portfolio of specific products to Orifarm Group, with a total value of up to $670 million. The product portfolio includes approximately 130 over-the-counter (OTC) and prescription medicines marketed in Europe, as well as two manufacturing sites located in Denmark and Poland. This divestment agreement was first announced in April 2020.

The divested product portfolio comprises OTC products and food supplements, as well as selected products in the therapeutic areas of cardiovascular, anti-inflammatory, respiratory, and endocrine diseases, primarily marketed in Denmark, Norway, Belgium, Poland, Finland, Sweden, the Baltic states, and Austria. The portfolio generated net sales of approximately USD 240 million in fiscal year 2020, driven mainly by cough/cold remedies, vitamin OTC brands, and prescription products such as Warfarub and Levaxin, along with other strong regional brands. While these products meet the needs of key patient populations in these countries, they fall outside Takeda’s chosen core business areas for long-term global growth.

As previously announced, Takeda and Orifarm have also entered into a manufacturing and supply agreement, under which Takeda will continue to manufacture selected products on behalf of Orifarm. In addition, approximately 600 employees from the manufacturing facilities, sales and marketing professionals, and other staff supporting the divested portfolio and manufacturing sites have transitioned to Orifarm.

The company plans to use the proceeds from the sale to reduce debt and accelerate deleveraging, aiming to achieve a net debt-to-adjusted EBITDA ratio of 2x in fiscal years 2021–2023. Takeda has already surpassed its $10 billion target for divesting non-core assets, having announced 12 transactions totaling approximately $12.9 billion since January 2019.

Meanwhile, as new technologies open up novel avenues for small-molecule drug development, Takeda has decided to invest $500 million in BridGene Biosciences, a drug research and development company. The two entities have established a drug discovery and development partnership aimed at identifying small-molecule therapeutics targeting “undruggable” neurodegenerative disease targets. Both companies will leverage BridGene’s IMTAC (Isobaric Mass Tagging Affinity Characterization) chemical proteomics platform to identify targets and small-molecule candidates.

The two companies will establish five distinct drug discovery programs. Takeda will subsequently develop these candidates into therapeutic candidates and advance them into clinical development. BridGene, leveraging its chemoproteomics platform to identify small-molecule interactions with diverse proteins in living cells, will help Takeda rapidly identify new targets and novel drug candidates, potentially targeting the underlying mechanisms of debilitating neurological diseases. This capability is critical to the R&D strategy for precision medicine approaches in neuroscience disorders.

Under the agreement, BridGene will receive an undisclosed upfront payment for the use of its IMTAC technology. For each validated target, Takeda Pharmaceutical Company Limited will obtain an exclusive license to research, develop, and commercialize candidate drugs. In addition, BridGene will be eligible to receive over $500 million in potential preclinical, clinical, and commercial milestone payments, as well as royalties on future sales of commercialized drugs resulting from the collaboration.

This collaboration builds upon a pilot project between BridGene and Takeda completed in 2020. The new partnership includes an initial research program focused on identifying targets for disease phenotypes associated with neurodegenerative disorders, which are considered potential neurodegenerative conditions and can be modulated by small molecules in phenotypic screening. As part of the collaboration, Takeda has the option to initiate up to four additional research programs.

References:

1.Takeda Completes Sale of Select OTC and Non-Core Assets to Orifarm

2.Takeda Pairs Up With BridGene to Solve "Undruggable" Neurodegenerative Diseases